In This Edition of the E-Line US Airways and ALPA Reach Agreement on Additional Cost Cuts The Breast Cancer Site Needs Your Help! VF3 Reminder and Information Did you know...

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US Airways and ALPA Reach Agreement on Additional Cost Cuts 
12/11/2002 8:43:00 AM

ARLINGTON, Va., Dec 11, 2002 /PRNewswire-FirstCall via COMTEX/ -- US Airways and the Air Line Pilots Association (ALPA) have reached a tentative agreement on additional cost savings that will save the company approximately $100 million annually, plus additional pension relief, paving the way for resolution on productivity agreements with the airline's other unions, and keeping in place its schedule to meet the final conditions for a federal loan guarantee and to file its plan of reorganization by Dec. 20, 2002. 

The tentative agreement is subject to ratification by the ALPA's US Airways Master Executive Council (MEC). 

David Siegel, US Airways president and chief executive officer, said that during intense talks, the negotiators for the airline's MEC "showed tremendous leadership and a keen understanding of what was required in order to successfully complete our Chapter 11 reorganization." 

"We continue to work to secure final approval of our loan guarantee from the Air Transportation Stabilization Board (ATSB) and file our plan of reorganization by December 20," said Siegel. "Our pilot union negotiators worked with us in the interest of identifying additional cost savings, and preserving jobs and pensions, and we greatly appreciate their efforts." 

Siegel said that ALPA will be communicating directly to its members about the details of the package, which includes a combination of productivity improvements, benefit and pension savings and some temporary wage concessions. The company had proposed a package of cost reductions entirely from productivity improvements, but ALPA responded by agreeing to phase-in productivity changes through attrition in order to prevent more furloughs, and to take some additional temporary wage cuts. "We respect ALPA's desire to come up with some creative solutions that will preserve as many pilot jobs as possible, given the rather bleak outlook for airline employment right now," said Siegel. 

In exchange, the company has committed to raise the minimum aircraft in the mainline fleet from 245 to the current fleet of 279. In addition, the company will make MidAtlantic Airways, its new regional jet subsidiary, a division of US Airways, further solidifying its commitment to create positions for furloughed mainline employees. 

US Airways mainline employees on furlough will be assigned to work the regional jets that will be flown by MidAtlantic at competitive regional airline rates and benefits, but allowing them to keep their seniority number and providing for coordination of staffing. 

Dr. David Bronner, the chief executive of the Retirement Systems of Alabama, and the primary lender to US Airways during its reorganization, praised the news of the agreement between ALPA and the airline. "I continue to have every confidence that all employees will step up to this latest challenge and work constructively with management to find the additional cost savings that are needed to secure the ATSB loan," said Bronner. "The cooperation between labor and management and their long-term outlook to secure success for the airline were primary reasons for our decision to invest in the company." 

Siegel said that discussions continue with the International Association of Machinists, the Communications Workers of America, the Transport Workers Union, and the Association of Flight Attendants.

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The Breast Cancer Site Needs Your Help!

43,300 women are lost to breast cancer each year -- that's one mother, sister, daughter or friend every 12 minutes. Join The Breast Cancer Site's Chain of Hope, and help save lives.

In mere seconds and at no cost, you can help provide the lifesaving gift of early detection to underprivileged women. 

Simply visit The Breast Cancer Site (http://www.thebreastcancersite.com/home) every day and click on the Fund Free Mammograms button to help fund free mammograms and reduce the number of lives lost to breast cancer. (The Pink button in the middle of the page.)

Clicking is free. Funding for free mammography screenings is paid by site sponsors. 

With your help, the lives of 2,000 underprivileged women -- or more -- will be touched in 2002 thanks to funding from The Breast Cancer Site. The sky is the limit! The more people who click, the more mammograms funded. Please join The Chain of Hope by clicking daily and spreading the word to your friends and family.

http://www.thebreastcancersite.com/home

"Delicate threads of hope, patiently woven, become the strong fabric of our faith."
- Janet L. Weaver

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VF3 Reminder and Information 

Please note: Application Deadline is TODAY December 11, 2002

The VF3 is the same in all respects as VF2 except for the shorter duration of the initial period (less than 6 months), which results in benefits being available for that entire period (January 7-May 30). VF2 was the same as VF1 except that medical was provided for only the first 120 days instead of the first two years. Everything else, including our commitment not to contest unemployment--is the same.

Application forms are available on the AFA US Airways website (http://www.afausairways.org/Furlough/VolFurloughRequest3.htm) in the crew rooms and on theHub (http://thehub.usairways.com/). The form must be submitted to Inflight Administration in Crystal City. The deadline for Inflight Administration to receive the form is December 11, 2002. Please ensure you are using the correct updated form. It states "2003 Voluntary Furlough 3 (VF3) Program Request Form" on the top of it.

Here are some highlights of the Voluntary Furlough 3 Agreement:

Scheduled to commence January 7, 2003 

Duration choices of VF 3:
- 4.75 Months VF3 beginning Jan 7, 2003 and ending May 31, 2003
- 10.75 Months VF3 beginning Jan 7, 2003 and ending Dec 1, 2003
- 16.75 Months VF3 beginning Jan 7, 2003 and ending May 31, 2004
- 22.75 Months VF3 beginning Jan 7, 2003 and ending Dec 1, 2004
- 28.75 Months VF3 beginning Jan 7, 2003 and ending May 31, 2005
- 34.75 Months VF3 beginning Jan 7, 2003 and ending Dec 1, 2005 

- Open to flight attendants who will not be involuntarily furloughed 
- Must be in an "active" and "available" status at the beginning of voluntary furlough 
- Unlimited on-line travel privileges for eligible family members, except for companion passes 
- Continued current group health and welfare benefits for first 120 days of voluntary furlough 
- Sick bank and vacation day(s) accrual for January 2003 only 
- Continued seniority and longevity accrual 
- May retire with benefits from a voluntary furlough status 
- No entitlement to furlough pay if awarded a voluntary furlough

Voluntary furlough flight attendants who have a balance of less than $5,000 in the US Airways, Inc. 401(k) Savings Plan, will be required to take a distribution of Plan funds. You may be able to defer payment of taxes if you roll your distribution over into another qualified vehicle such as an IRA. The Fidelity Service Center for US Airways will send distribution information to all Plan participants after January 7, 2003. You will receive similar distribution information if you have a balance of less than $5,000 in the ESOP. Fidelity will send information on the ESOP in April 2003. If you have an outstanding 401(k) loan, you will continue to be responsible for making timely loan payments in order to avoid loan default and associated tax penalties. Contact the Fidelity Service Center for US Airways at (800) 354-3412 to make necessary payment arrangements.

Those flight attendants who bid for a VF 2 and did not receive it must apply for a VF 3 to be considered.

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Did you know... 

While both male and female reindeer grow antlers in the summer each year, according to the Alaska Department of Fish and Game male reindeer drop their antlers at the beginning of winter, usually late November to mid-December. Female reindeer retain their antlers until after they give birth in the spring. 

Therefore, according to every historical rendition depicting Santa's reindeer, every single one of them, from Rudolph to Blitzen - had to be a girl.

We should've known. Only women would be able to drag a fat ol' man in a red velvet suit all around the world in one night and not get lost....

Season's Greetings!

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